Daily Chart Art – August 30, 2010

Is the Loonie set to fly higher? Well, it does look like it on USDCAD’s daily chart. It seems like the Greenback’s gains against the Loonie were capped at 1.0670. The pair edged down after hitting that resistance level and, judging from that weekend gap down, it could be poised to head lower. If Loonie strength prevails, the pair could slide all the way down until support around 1.0150.

EURCHF: 1-hour

Whoa! Check out those double bottoms and that strong break above the channel on EURCHF! Smokin’ hot right? But before you click that buy button, note that the pair seems to still be testing the neckline resistance just above the 1.3100 handle. Oh, and let’s not forget the stochastics which tells us that the pair is already overbought and could be on its way down anytime soon. Yikes! Looks like buyers and sellers are still neck-and-neck, huh? Maybe it’s best for us to chill out a bit and wait for more candlesticks before we bet our pips.

EURUSD: 4-hour

And for today’s finale, let’s take a look at EURUSD. After shooting down over the past month, EURUSD seems to have consolidated into a rising wedge over the past week. Is a breakout in the cards? Looks for candles close either above 1.2800 or below 1.2700 as signs that trading will continue in that direction. If we see an upside break, we may just see the pair revisit the 1.3000 handle. On the other hand, if sellers take over, we could see the pair break for new lows below 1.2600.

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